* E9-3 On March 1, 2017, Boyd Company acquired real estate, on which it planned to con- struct a small office building, by paying $80,000 in cash. An old warehouse on the property was demolished at a cost of $8,200; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,900 attorney's fee for work concern- ing the land purchase, $5,200 real estate brokers fee, $9,100 architects fee, and $14,000 to put in driveways and a parking lot. Instructions (a) Determine the amount to be reported as the cost of the land (h) For each cost not used in part (a), indicate the account to be debited. bunk reconeihation ring entries P7-SA Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fer tilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balance of $6,738.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance A comparison of the details on the bank statement with the details in the Cash account I. The statement included a debit memo of $40 for the printing of additional company 2. Cash sales of $883.15 on May 12 were deposited in the bank. The cash receipts jour- 3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15. ment 5-31 6,968.00 revealed the following facts. checks. nal entry and the deposit slip were incorrectly made for $933.15. The bank credited Timmins Company for the correct amount. 4. On May 18, the company issued check No. 1181 for $685 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $658. $2,690 was collected by the bank for Timmins Company on May 31 through electronic funds transfer Ms nts. 5. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $360 that was incorrectly charged to Timmins Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara Ballard, a customer, to Timmins Company on account. Instructions $8,931.90 (a) Prepare the bank reconciliation at May 31, 2017, (b) Prepare the necessary adjusting entries for Timmins Company at May 31, 2017. DO ITI 2-4b Stern Corporation's management wants to maintain a minimum monthly Prepare a c cash balance of $8,000. At the beginning of September, the cash balance is $12.270, expected cash receipts for September are $97,200, and cash disbursements are expected to be $115,000. How much cash, if any, must Stern borrow to maintain the desired minimunm monthly balance? Determine your answer by using the basic form of the cash budget. (LO 4). AP under *P9-8A In recent years, Jayme Company has purchased three machines. Because of frequent accounting department, a different accountant was in charge of employee turnover in the selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Salvage Useful Life Machine Acquired Cost Value (in years) Depreciation Method 1 Jan. 1,2015 $96,000 $12,000 2 July 1,2016 85,000 10,000 3 Nov. 1, 2016 66,000 6,000 6 Straight-line Declining-balance Units-of-activity For the declining-balance method, Jayme Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were 2016, 800; 2017, 4,500; and 2018, 6,000. Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31,2018. (b) If machine 2 was purchased on April 1 instead of July 1, what would be the deprecia- $60,520 tion expense for this machine in 2016? In 2017